Input Results Graphs Help

  Life Insurance Needs
How much life insurance is enough?

The Consumer Federation of America (CFA, 1997) recommends 6 to 8 times your income for a married couple with children. While rules of thumb may be helpful, they do not take each individual's situation into consideration. This calculator provides a quick and simple method to estimate the amount of life insurance you will need.

Income Needs
Annual income your family would need if you die today

Enter a number that's typically 60% - 70% of total income. Include all salaries, dividends, interest, and any other sources of income.
Annual income available to your family from other sources

Enter a number that includes dividends, interest, spouse's earnings (Social Security may be available).
Years income will need to be replaced1  
Burial expenses

The average cost of an adult funeral is about $10,000
Mortgage and other debts

Include mortgage balance, credit card debt, car loans, home equity loans, etc.
College costs2

2002-2003 cost of a four-year education: public college-$51,346; private college-$109,412.
Number of children:
Savings and investments

Bank accounts, CD's, stocks, bonds, mutual funds, real estate/rental property, etc.
Retirement savings

IRA's, 401(k) plans, Keoghs, pension and profit sharing plans
Present amount of life insurance

Include group insurance and personal insurance purchased on your own
1Important note: Inflation is assumed to be 4%. The rate of return on investments is assumed to be 8%.
2Source: The College Board, Trends in College Pricing 2002.

The calculators at this site are designed to help you to understand the issues that need to be considered in determining the investment option or options suitable for you. However, the calculators should not be seen as a substitute for professional advice from a financial planner who takes into account your personal financial circumstances and needs. We strongly recommend that you discuss your requirements with a qualified financial adviser, who can take into account your personal financial position and can help you choose a strategy that suits your own personal circumstances.